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01-21-2004 05:04PM FROM TO 12185685860 P.03 I i City of Pequot Lakes January 21, 2004 �I Page 2 1 LAnalysis I There are two types of conflicts of interest related to elected officials. First, statutory prohibitions like M.S. 471.87 generally prohibit members having a personal financial interest in contracts with the gove body they represent. Statutory conflicts are not applicable in this case. Common law co ifficts as defined in Minnesota appellate decisions are the second type of conflicts related to elg cted officials and do need to be considered. Numerous Minnesota 4=W decisions have discussed the subject of conflicts of interest. They explain that the purpose behind creation of a rule which would disqualify public officials from participating in proceedh igs proceed in a decision-making capacity when they have a direct interest in its outcome is to insure th it their decision will not be an arbitrary reflection of their own personal interests. The leading case on th s topic is Lem v. Coon Creek Watershed.Dist., 278 Minn. 1, 153 N.W.2d 209(Minn. 1967). The Court in this frequently cited decision held that whetber an elected official has a disquali ing conflict must be decided on a case by case basis. In j= the Court explained: L' There is no settled general rule as to whether such an interest will disqualify an official. Each case must be decided on the basis of the particular facts present. Among the relevant, factors that should be considered in making this determination are: (1)Ine nature of the decision being made; (2) the nature of the pecuniary interest; (3) the number of officials making the decision who are interested; (4) the if any, to have interested persons make the decision; and (5) the other means a railable, if any, such as the opportunity for review, that serve to insure that ti e officials will not act arbitrarily to further their selfish interests. The unique facts in each case pwt be considered when making a determination about whether a disqualifyiiig conflict exists" My conclusion is that)no council member is legally disqualified from participation in determining the council's alig�ment recormnendation to MnDOT. My opinion is based upon several factors_ Principal ng them is the nature of the decision being made. This project and the alignment evewWl by MnDOT will have wide-spread ramifications for citizens of the community in general. The decision being made on February 3•, 2004, will only be a recommendation to MnDOT which will consider many factors when making the routing determination_ Further, com,t3ruction is not expected to begin until 2010 or later, depending upon funding availability andl other variables.